2021 Annual Report

The following table presents the average balance and average rate paid on each of the following deposit categories for the years ended December 31, 2021, 2020, and 2019:

As of and for the Year Ended December 31, 2021 Average Average

As of and for the Year Ended December 31, 2020 Average Average

As of and for the Year Ended December 31, 2019 Average Average

(dollars in thousands)

Balance

Rate

Balance

Rate

Balance

Rate

Noninterest Bearing Transaction Deposits . . . . $ 764,087 — % Interest Bearing Transaction Deposits . . . . . . . . 441,528 0.46 295,036 0.55 223,376 0.73 Savings and Money Market Deposits . . . . . . . . 773,779 0.48 523,520 1.02 447,040 1.73 Time Deposits < $250,000 . . . . . . . . . . . . . . . . . 255,808 1.24 244,779 2.13 232,310 2.30 Time Deposits > $250,000 . . . . . . . . . . . . . . . . . 67,830 1.37 129,416 2.01 116,838 2.61 Brokered Deposits . . . . . . . . . . . . . . . . . . . . . . . . 406,863 0.97 348,126 1.45 261,023 2.39 Total Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,709,895 0.51 % $ 2,120,472 0.93 % $ 1,694,964 1.42 % — % $ 579,595 — % $ 414,377

The following table presents time deposits, including brokered time deposits, that are in excess of the FDIC insurance limit, currently $250,000, by time remaining until maturity:

December 31,

(dollars in thousands)

2021

Three Months or Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Over Three Months through Six Months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over Six Months through 12 Months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over 12 Months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ The Company’s total uninsured deposits, which are the amounts of deposit accounts that exceed the FDIC insurance limit, currently $250,000, were approximately $1.21 billion and $1.08 billion at December 31, 2021 and 2020, respectively. These amounts were estimated based on the same methodologies and assumptions used for regulatory reporting purposes. Borrowed Funds Other Borrowings At December 31, 2021, other borrowings outstanding consisted of FHLB advances of $42.5 million. The Company’s $11.0 million note payable matured during the first quarter of 2021 and was paid off in full at maturity. On March 1, 2021, the Company entered into a Loan and Security Agreement and revolving note which has made a $25.0 million revolving line of credit available to the Company, secured by 100% of the issued and outstanding stock of the Bank. The maturity date of the line of credit is February 28, 2023. As of December 31, 2021, there were no outstanding balances under the revolving line of credit. The Company’s borrowing capacity at the FHLB is determined based on collateral pledged, generally consisting of loans. The Company had additional borrowing capacity under this credit facility of $550.8 million and $361.2 million at December 31, 2021 and December 31, 2020, respectively. Additionally, the Company has borrowing capacity from other sources. As of December 31, 2021, the Bank was eligible to use the Federal Reserve discount window for borrowings. Based on assets pledged as collateral as of the applicable date, the Bank’s borrowing availability was approximately $126.0 million and $76.8 million at December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021 and December 31, 2020, the Company had no outstanding advances from the discount window. 8,353 3,255 11,607 36,343 59,558

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